Volatility Shares, one of the most aggressive ETF issuers in the crypto space, has filed with U.S. regulators to launch a suite of 5x leveraged exchange-traded funds tracking bitcoin BTC$110.504,56, ether ETH$3.986,96, and XRP.
The proposed products would amplify daily price moves by five times, meaning it can turn a 2% move in the underlying asset into a 10% swing in the ETF. That also means a 2% drop in BTC or ETH would wipe out 10% of an investor’s exposure in a single day.
The firm’s filing with the U.S. Securities and Exchange Commission (SEC) also includes 5× funds for Solana SOL$194,00 and several high-volatility equities, such as Coinbase (COIN), MicroStrategy (MSTR), Tesla (TSLA) and Alphabet (GOOGL).
In total, the batch lists 27 products across 3x and 5x leverage tiers, with an effective date of December 29, 2025. If approved, these would become some of the most extreme crypto-linked instruments available to U.S. investors.
“They haven’t even approved 3x yet, and Vol Shares is like, ‘let’s try 5x,’” noted Eric Balchunas, ETF analyst at Bloomberg, referring to pending 3x XRP proposals from GraniteShares.
Leverage that resets daily carries unique risks. Compounding and volatility decay mean that even if bitcoin finishes the week higher, a 5x ETF could underperform due to daily rebalancing.
Each evening, the fund rebalances to maintain its leverage ratio, buying after up days and selling after down days. Over time, those daily resets compound — and not in a trader’s favor when prices whipsaw. If bitcoin swings both ways through the week, the ETF’s constant rebalancing can chip away at performance even if BTC finishes higher.
In thin markets, especially around high-volatility assets like XRP, these dynamics can exaggerate price swings and trigger unintended losses.
The filing of the proposed shares come as market participants continue to recover from last week’s $19 billion liquidations across crypto futures in the industry’s largest such hit to date.
Source: https://www.coindesk.com/markets/2025/10/15/volatility-shares-files-for-5-bitcoin-ether-and-xrp-etfs
